While short-term analyses of stocks and cryptocurrencies may illustrate notable correlations, the story changes when observed through a broader lens.

In the long-term, the correlation between the two is rather weak, according to Bloomberg data compiled by U.S.-based asset manager Blockforce Capital.

The Blockforce analysis, which looked at bitcoin and the Standard & Poor’s 500 Index (S&P 500) from January 2015 through Oct. 11, 2018, found that the correlation during this period was not substantial.

“Historically, the correlation between the S&P 500 and Bitcoin has been insignificant. Although correlation values between the two asset classes has ticked up this year versus historical averages, with the current correlation hovering around .11, we believe this to be an insignificant value and don’t believe the two markets to be related,” said Blockforce CEO Eric Ervin.

“While most people talk about how Bitcoin is not correlated to the S&P 500, it’s important to recognize that not being correlated is not the same as being negatively correlated,” stated Ervin.

A Shifting Mindset?

Going forward, the situation could change, noted analyst Tim Enneking, as more “traditional” investors, as in those more experienced with assets like stocks and bonds, enter the space.

As more of these market participants get involved with digital currencies, it could result in the correlation between stocks and digital currencies pushing higher.

One of cryptocurrency’s “historical advantages has always been the absence of correlation to fiat investment classes,” noted Enneking, managing director of Digital Capital Management.

“If correlation were to increase on a sustained basis, it would make crypto a far less attractive investment,” he said.